Honesty and Real Estate: Do They Go Together?

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Today I want to talk about honesty and real estate.  Unfortunately, this is sometimes lacking in the real estate transaction process.  Many times, the agent is too scared to really be honest with their clients for fear of alienating them or losing the business altogether.  However, we are brutally and totally honest with our prospects and customers because we feel like that is the only real way to help them sell their home or find a new home.

Let me tell you about a typical phone call that I get on a regular basis.  Someone will call me because their house has been sitting on the market for a while.  It's expired and they are now looking for an agent.  Maybe they've been given my name by someone else, so they give me a call.

I go out to look at the house and try to tell them why it may not have sold.  I always tell people that I'm going to be honest.  Hiring me means that you're also getting the service of my brutal honesty.  It might step on toes, but I'd rather give you the truth up front so that you know where I stand.

Recently, I walked into a house that had expired with another agent.  As soon as I walked in, I knew exactly why the home hadn't sold.  The carpet was in very rough shape, there was lots of clutter and there were obvious repairs that were needed.  For instance, the Formica countertops were very aged and needed to be replaced.  At the same time, this particular seller was trying to get top dollar for their home.

Now, I'll give the agent some benefit of the doubt in that they got a lot of traffic through the house.  They actually did a decent job.  Where they failed this home seller was that they didn't speak the truth.  They didn't tell them the truth about why the house wasn't selling.

When I come out and take a look at your house, I'm going to tell you the truth.  Now, what you do with that information is entirely up to you.  You can simply ignore it, you can do it or you can do a certain part of it.  The choice that you make will affect how fast your home gets sold.

I would love to have a chance to chat with you about your real estate needs.  Whether you're looking to sell a house or buy a house, you can expect total honesty from me during the process.  Call me today so that we can talk about your specific situation.

Looking Back at 2011: Your Questions Answered

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Now that 2011 is over and we can look back, it's a great time to reflect on some of the questions that I've gotten via e-mail recently.  After 30 years in the business, it's always interesting to hear the thoughts of my clients and customers, as well as their questions.

How Long Will It Take To Sell My Home?

One of the questions I recently received was what is the most frustrating thing about being in the real estate business?  Perhaps the most frustrating part of being a real estate agent is that I cannot predict the future.  Unfortunately, I don't have a crystal ball that will tell my home sellers how long it will take to sell their home.  All we can do as real estate agents is look at past data and figures to come up with the list price and most likely sales price.  However, we never know how long it will take to sell a property.  You just have to trust that I know what I'm doing with my level of experience.

We Can Help With FSBOs Too!

Another big frustration for real estate agents is when we show buyers and spend time with them looking for the perfect home and building a relationship, and the buyer panics about finding a house and purchases a for sale by owner instead. Even after 30 years, this is still very hurtful to me as an agent simply because I want to do my best for all of my clients.  Many buyers don't know that they should call me even if they want to look at a FSBO (for sale by owner) because I can still help them negotiate the deal.  

How Did 2011 Stack Up Compared to 2010?

Another question I got recently was how was the market from 2011 compared to 2010? December statistics just came out, and one of the interesting points was that the active sales price in 2010 was $170,000 and only $164,000 in 2011.  In addition, the average closing time went up slightly from 68 days to 72 days.

Our real estate group did a little bit better in comparison with an average sales price of $205,000.  This led to the question of whether or not I only deal with high-end real estate and the answer to that is no.  In fact, the lowest sale that we participated in during 2011 was $50,000.  We will work on any kind of property at any price range.

Does Dave Ramsey Endorse You?

I also received a question asking if we are endorsed by Dave Ramsey.  The answer to that is yes.  We have taken the Money Matters financial accountability classes two times now.  We believe that you should have your financial house in order before buying a house.  Dave Ramsey does endorse us, and we have been scrutinized heavily by him and his team.

Where Does CBS Home Rank, And Where Do You Rank?

Another inquiry I had was whether or not CBS Home is number one in residential real estate in the market?  The answer to that is also yes.  In fact, our agent team ranks number three in the entire company out of about 450 agents.  That would put us in the top 10 agents out of our entire area.

Finally, someone asked me what I liked best about the real state business.  I would have to say after 30 years that it's still the same answer I've always had.  I get to help people make life-changing decisions and get to make new friendships.  I love your referrals because they allow me to create new friendships.  I met a lot of great people this year.

As always, if we can answer any questions about real estate or anything else, don't hesitate to call us.  We love your referrals and keep e-mailing those questions.

Spotlight on Alaska – Thousands of Coastline Miles, Great Fishing and Gorgeous Vast Expanse

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Sitting down with a true Alaskan, mayor of North Pole Douglas Isaacson, was a real pleasure and with all the interesting facts and information about the town, area and region – we just had to share it with you. So get ready to learn about a great state that, aside from a few really general things like “no daylight” and “whale watching”, not too many people really know too much about.

Winters in Alaska Are Fun!

Believe it or not, there is more to do in Alaska than to watch whales and wait for the few hours of daylight to pop around. Since North Pole, Alaska is considered the Christmas capital of the world, in a sense, the winter wonderland keeps its holiday stature all year round. Though you will not find skiing as a winter activity in the great state, you will find amazing ice sculptures that are created by artisans from around the world and celebrated globally. Here’s a link that shares the incredible designs and structures that are all centered on Christmas themes.

Living in the North Pole

Aside from Santa (you can catch a glimpse of him on the Santa cam here) people that live in the North Pole feel it’s a great place to live. Located in between two military bases, the city is Southeast of Fairbanks, Alaska.

Keeping with the Christmas theme and reputation for being Santa Claus’ hometown, you will find plenty of holiday decorations, year around. There are many street roundabouts that are decorated with candy cane light posts and thousands of lights.

One thing that proves very challenging for residents of North Pole is the cost of electricity. An astronomical $1000 or so each month to power (including heat) the average 2,500 square foot home is typical. Compared to the lower 48 states, this is almost four times as much in many cases.

If you do decide to move to the great state of Alaska, particularly to the North Pole area, the cost of an average home is currently about $225,000. Contrary to popular opinion, there is a reasonable amout of daylight in the region and even during the winter solstice when the days are shortest of the year, the extremely bright moonlight illuminates the entire area fairly well. Situated about 120 miles south of the arctic circle, North Pole does have limited daylight of only three hours but temperatures are deceivingly warmer than they may appear when you factor in the “what it feels like” scale. Where in the Midwest, for example, the wind chill factor might make a 37-degree day feel more like 20 degrees – the opposite holds true for this part of Alaska.

Hanging Out For Recreation in Alaska

There are a lot of beautiful aspects to life and time spent in Alaska – such as the extraordinary fishing industry and everything that goes along with it. Though not commercial fishing, there are plenty of opportunities for recreational fishing. To learn about licenses that are required by the state, visit the official Alaska website.

If you travel during the week of July 4th when it is hot and humid in most states, you’ll be pleasantly surprised by the comfortable temperatures and wonderful festive activities planned each year in the North Pole. The summer festival includes lot of fun for families, including a parade and fair-like atmosphere.
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If you are looking to explore new potential places to live or visit – you should definitely go to Alaska, making it a point to try to see as much as you can while there. Amid much natural vast beauty is the fabric of the region, it’s diverse cultural melting pot of people ranging from Native Americans to Russians and so many more. Considering purchasing a home there? Be sure to check with your local Realtor who can help you find the perfect agent up there with experience in anything from military moves to long-distance relocation and of course one that is well versed in the Alaskan landscape.

Financing New Construction: Locking in Low Interest Rates

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There are 2 types of loans when you build a new home. There is the short term loan, also known as the “builder’s loan” or the “construction loan.” This is the loan for the construction of the home. Then, there is the long loan. This is the loan that pays for the home over a number of years. Since rates are at an all time low for this type of loan right now, it’s important to lock those rates in so they don’t’ climb on you in the coming years.

“Builder’s Best” Program

The “Builder’s Best” program acts as an insurance policy against future interest rate rises. You are able to lock in on an interest rate, based on today’s historic low rates. It can be locked in for 6 months, 9 months, or even up to a year.

The “Builder’s Best” program establishes a ceiling interest rate. That means whatever the interest rate is when the program is set up is the highest the interest rate will ever get. If the interest rate drops while the house is being built, you have the ability to adjust it to the lower interest rate, too. Once the house is 60 days from completion and the interest rate is down from what it was when the program was initially started, the buyer has the ability to re-lock the interest rate.

If the rates rise during the construction phase of the home, there is no worry of the interest rate on your loan rising. Once you lock in a rate it cannot go higher than that. You can even lock in a lower rate years down the road with a small fee.

How Much Does the “Builder’s Best” Program Cost?

Prices will vary from year to year, and even month to month. Currently, on the 10 year adjustable rate, all that’s required is a 1% deposit. Additionally, you will get that deposit back at closing. For a fixed rate “Builder’s Best” loan, there is a small fee. For example, for a $200,000 home you could expect to pay approximately $1,000.

Buy Discount Points for Additional Savings

There is a way to lower your interest rate even more and that’s through the use of discount points. Discount points are fees paid to a lender at closing to lower your mortgage interest rate. When using this strategy to bring your interest rate down, however, it’s important to make sure that the amount you’re paying for the discount points doesn’t exceed the amount you will be saving in interest.

Want to hang onto today’s interest rates tomorrow? The “Builder’s Best” program allows you to lock in today’s historic low interest rates. Even if the rates sky rocket in the coming years, you will be left paying the interest rates of today with this great program.

Keeping a High Credit Score: A Fundamental Element to Buying a New Home

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One of the most important things when buying or building a new home is to have a good credit score. Yet, good credit takes time to build. Credit scores are important and need to be taken into consideration when doing any sort of financial planning. There are, however, some practical things you can do today and in the future to keep your credit score low so it’s low when you’re ready to buy or build a home.

Why are Credit Scores so Important?

With the changing economic times, credit scores are becoming more and more important. They are the barometer those lending money use to see if you are worth the risk of lending money to for a new home, or anything else you might consider asking to borrow money for.

Credit scores vary widely from 300 to 850. Anything you do where you borrow money, such as buy a new home or car, is influenced by your credit score. The higher your credit score is the better. It’s important to monitor your credit score so you know what it is and where you stand if you wish to borrow money.

How is A Credit Score Determined?

Each credit reporting agency has their own formula of how they determine a credit score. In general, however, a credit score is determined by:

1. Making Payments on Time (35% of score): Making a late payment can impact you for years to come. Always make your payment on time for great credit.

2. Amount of Revolving Debt (30% of score): The less you owe on your credit card compared to how much you can borrow on your credit card, the better. The ideal credit score has 2 or 3 lines of revolving credit. It’s not just credit cards that’s included in revolving debt, it includes any type of credit lines.

3. Length of Credit Accounts (15% of credit score): Have a higher available credit limit on fewer cards. This strategy will give you the amount of credit you need but will allow you to have a better credit score with fewer accounts opened in a short time period.

4. New Credit (10%): The term “new credit” as it relates to your credit score is a combination of “credit inquires” and opening up new credit.   “Credit inquiries” are when you apply for a new credit card or line of credit and your credit has been checked. The last 90 days before you make a major purchase are the most important when it comes to credit inquires. Plan ahead and don’t apply for any form of credit before you make a big purchase so this inquiry doesn’t show up on your credit report.

The important thing with credit is remembering it’s not something that can be fixed overnight. So it is not something that should be taken lightly. It’s important to review each component of what makes up the credit score and practice good habits consistently in the long term. In the end, you will be left with great credit and the ability to buy the exact type of house you want when you want.

Check out these FREE forms to help you with your credit score:
- Where is Your Credit Score Heading?
- Credit Flyer

Nebraska Elite: A Workout All Its Own

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Sometimes something great happens and you just have to take note of it. A new business has come to town and it’s so awesome it deserves an entire blog post all its own. It’s called Nebraska Elite and it’s just what the doctor ordered for both great health and a good time. Nebraska Elite is for both kids and adults.

There are many enhancements to the incredible Nebraska Elite facility that will be done in the next couple of weeks and ready for use in the Omaha area and make it a state of the art facility.

What Does Nebraska Elite Have to Offer?

Nebraska Elite has a lot to offer! At one time this facility just had volley ball courts. Now it is a state of the art work out facility with something for everyone, no matter what your workout level. They have a large weight room and intense weight equipment.

Nebraska Elite prides itself in the wide variety of full size courts it offers its members. There are several full size tennis courts. You can receive private lessons on these if you wish. There will also be 2 full court basketball courts. On these courts, we will have youth basketball programs, tournaments, and more. The basketball courts will offer state of the art basketballs, hoops, and scoreboards.

Volleyball courts will be found in abundance at Nebraska Elite. There will 7 of them total, allowing for specialized instruction, team play, league play, and much more for most of the year.

There is a pool for those who prefer to keep in shape by swimming laps or other forms of aquatic exercise.  There is also a private aerobic area for those who prefer to keep in shape with aerobics. In addition, there is a group exercise room for activities like boxing and Zumba.

Specialized Training

One program Nebraska Elite is very excited to offer is the Y2E (Youth to Elite Enhancement) program. This will be run by select trainers with a separate membership for kids who are 8-18. It is for youth who are trying to enhance whatever sport they are involved in. It offers intense, specialized training.

Many of our other areas, such as tennis and volleyball, offer individual instruction, as well.

If you want a tour of the facility or would like to schedule a party at the facility, call Mike Ryder at (402) 706-4109. The address is 1212 N. 102nd Street.

Information Overload!

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Life is much more complex than it used to be. The same can be said about real estate today. There are so many decisions to be made when it comes to buying or selling a home that just weren’t around several years ago. The sheer volume of information makes it hard to know what the right answer is.

Information…Overload?

We are bombarded with information today. Even when you sit down to watch the news, you can watch someone talking about the world’s latest events, while also reading one or two crawlers at the bottom of the screen giving you even more news from the day.

No matter what we do, we are bombarded with information. Even when you try to buy or sell a house, you can be overwhelmed with the amount of information out there and it can be downright paralyzing to make any type of decision.

Call on a Professional

Information overload with real estate is one of the main reasons you need to call on a professional who knows the industry inside and out, who can answer your questions with clarity so you know exactly what you are doing when you make the biggest investment of your life.

Finding the right professional is key, someone who knows the market inside and out and can give you the correct answer from the very beginning. A good real estate agent knows virtually everything about buying and selling real estate so you don’t have to. A good agent will also know key facts about neighborhoods, something that can go a long way in helping you either buy or sell your home. They will also provide wise counsel on pricing your home when you put it on the market. This is very important on whether your home will sell or not.

There’s no doubt we have information overload today. With so many things coming at us at once, it’s hard to know what the right decisions are when it comes to buying or selling a home. That’s why it’s important to call on a professional who knows the ins and outs of the real estate industry and can handle all of your home buying or home selling needs with the expertise you need.